Lecture 1 Introduction to Business Law and the Australian Legal System

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    BUSL250

    Welcome to BusinessLaw!

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    BUSL250 Student Information

    Course Convenor and Lecturer

    Dr Verity Greenwood

    Office: E4A Room 310

    Telephone: 98507283

    Email: [email protected] Hours: 3.00-5.00pm Monday in office

    Deputy Convenor and Lecturer

    Andrew Dahdal

    Office: E4A Room 317

    Telephone : 98508615

    Email: [email protected]

    Consultation Hours: 11.00-1.00pm Thursday in office

    Verity Greenwood, Session 2, 2013

    mailto:[email protected]:[email protected]:[email protected]:[email protected]
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    BUSL250 Information cont Prescribed Textbook (required): Business Law BUSL250 compiled by

    Dr Verity Greenwood and Julian Dight-custom book, Pearson

    Publishers,2013 plus ebookand access to MyLawLab.

    BUSL250 Email : [email protected]

    All email correspondence must be sent to this email. If highly personalor

    confidential then contact the convenor personally.

    Unit website http:/ilearn.mq.edu.au/

    -BUSL250 Unit Guide

    - Lecture slides

    - ilecture

    - Online Quizzes

    - Announcements-

    Verity Greenwood, Session 2, 2013

    mailto:[email protected]://learn.mq.edu.au/http://learn.mq.edu.au/http://learn.mq.edu.au/http://learn.mq.edu.au/http://learn.mq.edu.au/http://learn.mq.edu.au/http://learn.mq.edu.au/http://learn.mq.edu.au/http://learn.mq.edu.au/http://learn.mq.edu.au/mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]
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    How does Business Law affectour everyday life?

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    Defining the law

    Law is: the set of rules,

    made by the state, and

    enforceable by prosecutionor litigation.

    statewhen state in lower case-means governmentgenerally

    Stateif capitalised it means state within federatione.g NSW

    Verity Greenwood, Session 2, 2013

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    The purpose of law

    Law: resolves disputes,

    maintains social order, preserves and enforces community values,

    protects the disadvantaged,

    stabilises the economy, and prevents the misuse of power.

    Verity Greenwood, Session 2, 2013

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    Characteristics of a legal system

    Accessibility

    Certainty

    FlexibilityFairness Law's

    ideals

    Legal system

    Characteristic

    s

    Verity Greenwood, Session 2, 2013

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    A Classification of Law- Criminal and

    Civil

    CIVIL

    Examples of laws

    relevant to business

    Contract Law

    Torts

    Property Law

    CRIMINAL

    Examples of

    business crimesExtortion

    Larceny

    Arson

    Stealing

    Cyber attacks

    On the balance of

    probabilities

    Beyond reasonable

    doubt

    Common Law

    Verity Greenwood, Session 2, 2013

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    Inherited legal system in Australia

    Nowusually

    work

    together

    Verity Greenwood, Session 2, 2013

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    Common Law

    Common law is the law created by the reported decisions of

    judges

    Common law is also known as:

    case law;

    precedent;

    unenacted law;

    unwritten law.

    Verity Greenwood, Session 2, 2013

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    Common Law

    comprehensive system;

    remedies not discretionary;

    rights are enforceable at any time subject to statute of

    limitations;

    valid against the whole world;

    Verity Greenwood, Session 2, 2013

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    Statute Law

    Statute law are the laws created by State and

    Federal parliaments.

    Statute law is also known as:

    legislation;

    Acts of Parliament;

    enacted law.

    Verity Greenwood, Session 2, 2013

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    Statute Law

    Statute law also includes laws made by other

    government bodies.

    This is known as delegated legislation and takes

    the form of:

    by-laws;

    orders;

    rules and regulations.

    Verity Greenwood, Session 2, 2013

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    Common Law v. Statute Law

    Today, statute law is the most important source of

    law as the great majority of law comes from the

    parliaments.

    Statute law overrules common lawin the event

    of a clash between the two.

    Verity Greenwood, Session 2, 2013

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    Equity

    Equity developed as a result of the growing inflexibility andrigidity of the common law.

    Equity implies fairness and justice in the law.

    Not comprehensive.

    Remedies are discretionary.

    Require prompt attention.

    Valid only against those specified in court.Follows common law; it supplements it.

    Only against individuals not property.

    No application in criminal law. Verity Greenwood, Session 2, 2013

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    Equity

    Equitable remedies include:

    Injunctiona court order directing a person to

    stop doing something; and

    Specific performancea court order directing

    a person to carry out an obligation.

    Verity Greenwood, Session 2, 2013

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    Public v. Private Law

    Another classification of law is into public and private

    law.

    Public lawthe organisation of government and itsrelationship with the people.

    Private lawdeals with disputes over rights and

    obligations between people or organisations.

    Verity Greenwood, Session 2, 2013

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    Categories of law

    Verity Greenwood, Session 2, 2013

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    The changing law

    The law changes regularly because of:

    political change,

    the need to fix problems with the law, changing community values,

    pressure from lobby groups, and

    changing technology.

    Verity Greenwood, Session 2, 2013

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    The six key characteristics of the

    Australian legal system

    Verity Greenwood, Session 2, 2013

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    MonarchyThe head of state is the Queen

    Const i tu t ionalShe holds that position pursuant to

    underlying constitutional arrangements

    rather than by force of arms

    Constitutional Monarchy

    Verity Greenwood, Session 2, 2013

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    Key characteristics

    Liberal democracy:

    Laws are made by, and executive government consists of,

    elected representatives who exercise their power subject to

    the rule of law and to the various Federal and State

    constitutions.

    Common law legal system:

    Our legal system is based on the British legal system, and

    can be contrasted with other forms of legal system such as

    the civil law legal system.

    Law that has evolved through judicial decision and practice

    Verity Greenwood, Session 2, 2013

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    So how did common law

    become a source of law inAustralia?

    Verity Greenwood, Session 2, 2013

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    History of the system

    For tens of thousands of years prior to British

    settlement there was in existence in Australia a

    sophisticated and effective legal system: the

    Indigenous Australian legal system.

    Unfortunately, the British did not recognise or

    acknowledge the Indigenous Australian legalsystem upon their arrival in the 1700s.

    Verity Greenwood, Session 2, 2013

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    Reception of English Law

    Australia was declared to be terra nu l l iusat the time thecolony was established.

    Australia was deemed to have been settledby Britainrather than conquered by Britain or acquired by treaty.

    British settlers brought British law with them according tothe doctrine of reception.

    CASE: Mabo v Queensland(No 2)(1992) 175 CLR 1

    - The High Court acknowledged that Australia had not beenterra nullius and that common law recognises a form of native

    title

    to land.

    Verity Greenwood, Session 2, 2013

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    Origins of Australian Law

    Customary law

    The Mabodecision related specifically to Aboriginal

    land rights.

    In Walker v. New South Wales (1994) the High Court

    discussed the validity of Aboriginal customary law

    relating to criminal cases. The court decided thatcustomary law had been extinguished by the

    criminal legislation passed by the states and

    territories.

    Verity Greenwood, Session 2, 2013

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    Charting the history of Colonial legal systems

    Date Event Effect

    1787 First Charter of Justice Established colonial courts with civil & criminal jurisdiction

    1788 First colonists arrived inNSW

    Carried with them the English law

    1814 Second Charter of

    Justice

    Established Supreme Court - civil jurisdiction & sub. structure

    1823 New South Wales Act

    1923 (Imp) and ThirdCharter of Justice

    Established NSW as full colony

    established comprehensive court system established Legislative Council appointed by the Crown

    1828 Australian Courts Act

    1828 (Imp)

    Increased size of Legislative Council

    Provided laws of England in force 1828 had effect in NSWonly if there were particular provisions to that effect

    1850 AustraliansConstitutions Act (No 2)1855 (Imp)

    Created colony of Victoria and allowed colonies to establishparliaments with two houses (bicameral)

    1855 NSW Constitution Act

    1855 (Imp)

    Changed constitutional structure to create a bicameral NSW

    parliament with representatives and responsible government

    1865 Colonial Laws ValidityAct 1865 (Imp)

    Confirmed ability of colonial legislatures to amend own

    constitutions; Declared colonial parliaments have no power

    Verity Greenwood, Session 2, 2013

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    The Australian Constitution

    1900

    - The British Parliament passed theAustralian Constitution Act 1900(Imp)The Australian Constitution united the colonies in a federat ion

    The Commonwealth of Australia came into existence on 1 January

    1901.

    Each of the colonies, now States, gave up certain powers, rights andduties to the new Federal government, and at the same time retainedtheir individual identities and substantial legislative authority.

    Today, Federal, State and Territory governments in Australia are freefrom interference by the British Parliament.

    Federation involves a division of powers between the States and theCommonwealth

    Verity Greenwood, Session 2, 2013

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    Separation of Powers

    In the Constitution, the functions of government areallocated to different institutions:

    - Legislat ivefunctions : Laws are madeby aparliament

    - Execut ivefunctions :administeredby an ExecutiveCouncil or Governor in Council

    - Judic ia lfunctions :interpretedand applied toparticular cases by a court system

    Under the Westminster system the separation of powers isnot absolute

    Verity Greenwood, Session 2, 2013

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    The three arms of government

    Verity Greenwood, Session 2, 2013

    COMMONWEALTH AND STATE POWERS

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    COMMONWEALTH AND STATE POWERS

    Commonwealth

    State

    Concurrent powers(Shared powers)

    Exclusive powers(Commonwealth only)

    Residual powers(State only)

    Examples

    s.52: Exclusive powers of

    Parliament

    s.90: Customs, excise and bountiess.92: Free trade between the States

    s.105: Taking over state public debts

    s.114: Military forces

    s.115: Currency

    s.122: Government of federal

    territories

    Examples under Section

    51

    Insurance

    BankingIndustrial Relations

    Examples

    Education

    Local Government

    Transport

    Exclusive, concurrent and residual powers

    Verity Greenwood, Session 2, 2013

    COMMONWEALTH CONSTITUTION

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    COMMONWEALTHCONSTITUTION

    Commonwealth Constitution

    Parliament hasLegislative power

    Cabinet hasExecutive power The Courts haveJudicial power

    The Ministry High Court

    House of

    Representatives

    SenateOther federal courts

    Doctrine of separation of powers

    Verity Greenwood, Session 2, 2013

    STRUCTURE OF THE AUSTRALIAN

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    STRUCTURE OF THE AUSTRALIANCONSTITUTION

    33Verity Greenwood, Session 2, 2013

    FEDERAL / STATE RELATIONS

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    FEDERAL / STATE RELATIONS

    If the Federal Parliament has not legislated inrelation to any of the matters listed in s 51, thenthat matter remains within the regulatory authorityof the States.

    If a State parliament has made a law in relation toone of these matters, and the Federal Parliamentmakes a law in relation to the same matter, then s109 of the Australian Constitution provides that,the latter shall prevail, and the former shall, to theextent of the inconsistency, be invalid.

    eg.Wall is v Downard-Pick ford (North Queens land) Pty

    Ltd (1994) 68 ALJR 395

    Verity Greenwood, Session 2, 2013

    THE STRUCTURE OF PARLIAMENT

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    THE STRUCTURE OF PARLIAMENT

    Verity Greenwood, Session 2, 2013

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    Coming up next..

    Australian Legal

    SystemChapter 3

    & Chapter 4

    (pp.94-102)